Japan Launches Dedicated Crypto Division Amid Push for Mainstream Recognition

Japan's Financial Services Agency (FSA) is launching a dedicated Crypto Assets and Stablecoins Division on August 7. This move follows through on a reorganization approved in December 2025, aiming to treat crypto like mainstream financial products.

The new division will oversee the sector with three specialized teams: the Crypto Asset Monitoring Office, the Innovation Promotion Office, and the Digital Payment Planning Office. The restructuring is needed to handle new challenges from financial digitalization and strengthen supervision as technology evolves.

Japan's efforts to bring crypto under mainstream rules are in full swing. The country's parliament passed a law reclassifying crypto assets as financial products under the Financial Instruments and Exchange Act (FIEA), set to take effect in 2027. This change lays the groundwork for spot crypto ETFs, possibly on the Tokyo Stock Exchange.

Japanese banks are already involved in stablecoin experiments. Licensed banks, money transfer providers, and trust companies can issue yen-pegged stablecoins under a new framework.